Evolution of Generative AI in SERPs on PPC Advertising

Evolution of Generative AI in SERPs on PPC Advertising

Generative AI is being used by Google and Microsoft to provide a new way for finding information needed. This is the major shift in search engine results pages (SERPs).

GenAI has significant potential to rewrite the global economy. Its power and capabilities are reflected in the huge variety of tasks that it can assist in. The popularity of GenAI reached a new milestone with ChatGPT, GitHub Copilot, and Gemini and the adoption rates exploded across the globe.

GenAI helps with content creation, coding, personalization, rapid prototyping, chatbots creation, software development, data augmentation, fraud detection, and privacy, automating 70% of human tasks and analysing both fragmented and unstructured data.

Ad performance in generative experience

Google’s Search Generative Experience on ads within Google’s SERP. Understanding the impact SGE has on ads in Google SERPs is important for businesses and marketers for making data-led decisions for more effective marketing.

Business benefitting integration of Generative AI in a system or software

Over 80% of enterprises will deploy GenAI-based applications in production environments and adopt GenAI in APIs in 2024. So, when humans and machines work hand-in-hand, the possibilities to scale up a business would be immense.

Industries such as healthcare, fintech, SaaS, education, entertainment, and tourism can widely benefit from its transformative role in the coming years.

Chat-Based Search

Chat-based search is a new feature that includes the integration of the conversational style of chat applications. Generative AI like ChatGPT has the extensive search capabilities of search engines. It uses natural language processing to understand user queries and provide more relevant results.

Search engines are incorporating genAI like ChatGPT to create a new chat-based search feature, combining chat application style with search engine capabilities for a more conversational search experience.

Google is currently testing the integration of chat-based generative AI into the search experience, which would significantly reshape how users interact with search engines and challenge conventional search strategies. Chat-based search enables more personalised and conversational interactions, enhancing the user experience and boosting engagement.

Generative Search Results and Ads on Google

Generative search experience on Google adds a conversational experience at the top of the SERP. The regular ads and organic results are pushed far down the page, taking a lot of scrolling to see them.

With the ads coming to conversational results as well as remaining in their current locations, there would be available places for showing ads. However, the space for ads visible above the fold is decreasing. This means that there will be more competition for the most desirable placements and likely a continuation of the rise in cost per clicks (CPCs).

Generative Search Results and Ads on Bing

Google isn’t the first search engine to introduce chat-based search results. Microsoft integrated ChatGPT in its search results pages on Bing in February 2023. Its chat experience does not dominate the SERP as Google’s does. It is either a sidebar or a full-page experience after the user switches from the search to the chat tab.

Ads Shifting To Other Search Tools

For instance,

Microsoft announced impressive increases in its usage, with an eight-fold increase in daily downloads on the Bing mobile app.

ChatGPT has posted impressive numbers, becoming the fastest consumer app to hit 100 million users, taking just 2 months. ChatGPT is known to produce factual errors, which may hamper it from becoming a viable alternative to search engines, which know that being right is more important than just sounding right.

Microsoft is working to increase its network sites and apps where ads can be shown and have creates an ads solution, ads for chat API, to monetize chat experiences.

How Can Advertisers Run Ads in the New Experience?

Google and Microsoft are experimenting with their new chat-based search experiences. And the shift does not require any drastic changes in the approach. Advertisers are continuously using keywords, audiences, ad assets, and typical account settings for running PPC ads, which Google and Microsoft now map to relevant chat conversations.

Future of Generative AI Integration with SERP and PPC Ads

The intense competitive digital landscape of search engine results pages and PPC ads demanding businesses compete for visibility and conversions. Organic search results are driving SERP, with features snippets and precise results becoming increasingly prominent.

Generative AI is improving the relevance and quality of search results by delivering clear and relevant responses, and automating the generation of featured snippets, enhancing user engagement and satisfaction.

Generative AI empowers businesses to create personalized content, refine targeting strategies, and maximize campaign performance and ROI. By harnessing this technology’s ability to generate unique creatives, brands can captivate audiences, drive conversions, and stay ahead of the curve in the digital landscape.

The future of online search and advertising is set to redefine how we interact with search results and perceive PPC ads, ushering in a new era of dynamic and personalized user experiences. The convergence of generative AI with SERP and PPC ads promises to revolutionize online experiences for both users and businesses.

Final Thoughts

• Chat-based search is redefining the consumer journey to conversion.
• Advertisers need to monitor change, optimizing strategies for effectively competing in the increasingly conversational and interactive search landscape.
• Google and Microsoft are advancing their generative search experience.